Debt can definitely creep up on you over time. A few credit card uses here, a handful of student loans there. Now, you are suddenly swimming in debt and can’t seem to find a way out. Well, don’t worry, we can help. Here are our 10 best tips on getting rid of your debt without adding more debt in the process.
1. Lower Your Interest Rates
The truth is, when it comes to credit cards, you rarely spend as much as you owe. The difference is the high interest rates attached to your cards. Contact the card’s customer service and see if there is any way to lower your rates, thus reducing the amount that keeps getting added to your card.
2. Consolidate Your Debt
Some loan lenders offer the option to consolidate your debt. This means all of your loans will be combined. Because of this, you will only have one payment to pay per month versus a handful.
3. Stop Using Your Credit Cards
It might seem like a great idea to swipe your credit cards when you’re out and about, but try using them when necessary. If you can afford to pay for it with cash or a debit card, your monthly payments will thank you.
4. Make A Plan
Don’t just make payments whenever you receive an email. Take charge of your finances and create a list of your debt and how much you owe from each lender. This will help you stay on top of things and help you budget.
5. Pay More Than The Minimum
When it comes to certain credit cards, the balance you have to pay does not change after you make a payment. Why? Because you are only paying the minimum payment amount. The more you pay over the minimum, the less you will owe. If you keep making minimum payments and your balance stays the same, it is eating up your hard-earned money!
If you are used to spending $10 a day grabbing a coffee at Starbucks, these frivolous purchases are sure to run up your credit cards and cause debt. That being said, try to find ways to downsize on what you’re spending.
7. Don’t Get New Cards
We know that a credit card for your favorite department store is very enticing, but if you are already working on paying off your debt, it is not a good idea to take it on.
8. Get Extra Cash
If your full-time job isn’t getting your credit card debt total down, consider finding an additional source of income to help. This doesn’t mean burning yourself out with another full-time or a part-time job. Try to find freelance work!
9. Address Your Most Expensive Loan
Although it may seem daunting, try tackling your biggest loan first. After you take care of this one, the others will be much easier to budget for.
10. Ask For Help
Whether you have a family member who was able to pay off all of their debt or you feel comfortable speaking about it with your bank, it is always a good idea to get financial advice.